PGP I FRA - 2021 - Quiz 2 Time: 40 + 5 minutes NAME: ___Pulkit Sethia

SECTION: C

Note: 1. Students are expected to complete the quiz in 40 minutes and upload the quiz solution within 45 minutes.
2. This is a closed book quiz. Rough sheets are allowed for calculations.
3. Answers must be given in the format provided in the question paper.

ASHOKA STEEL LIMITED (ASL)

Balance Sheet as at 31-Mar-20 31-Mar-19
ASSETS
Non-current assets
Property, plant and equipment
Gross Block 5300 4600
Less: Accumulated depreciation 950 700
Net Block 4350 3900
Investments in subsidiary companies 100 105
Current Assets
Inventories 260 165
Accounts receivable (Gross) 170 200
Less: Provision for doubtful debts 5 10
165 190
Prepaid expenses 50 70
Short-term investments 85 120
Advance tax (2018-19) 300
Advance tax (2019-20) 280
Cash and cash equivalents 135 365
Total Assets 5425 5215
EQUITY AND LIABILITIES

Share capital 310 300

Reserves and surplus
Share Premium 1290 1200
Reserves and surplus 900 800
Long-term loans 1900 1800

Current Liabilities
Short-term loans 200 350
Accounts payable 450 300
Dividend payable 120
Outstanding expenses 75 70
Provision for tax (2018-19) 275
Provision for tax (2019-20) 300
Total liabilities and owner's equity 5425 5215

The following additional information are available pertainig to the financial year 2019-20.
1.       ASL had a profit before tax of 800.
2.       ASL had divested the shares of a subsidiary company at a profit of 40. The shares had a book value of 5
3.       Short-term investments with a book value of 35 were sold for 20 during the year.
4.       Actual bad debts during the year were 8.
5.       No fixed assets were sold during the year.
 6.       The total tax expense booked for the year was 310. The assessment for the year 2018-19 was complete
7.       ASL used to pay quarterly interim dividends during August, October, and February of the financial year
8.       ASL changed its banker during the year. It paid the long-term loan from SBI of 500 and short-term loan

Required: Prepare the cash flow statement of ASL for the financial year 2019-20 in the format given below

ASHOKA STEELS LIMITED

CASH FLOW STATEMENT FOR THE YEAR 2019-20
Particulars Amount
Cash flow from operating activities 280

Profit before tax 800

Add: non cash expenses

Bad debt provision expense 3
Depreciation 250

Adjust: other head

Profit from divestment of share -40
Loss on sale of short term investment 15

Working Capital Change

Inc in inventories -95
Change in A/c rec 22
Dec in prepaid exp 25
Dec in short term inv 35
Dec in short term loan -150
Inc in account pay 150
Change in PPE -450

Income tax
Refun for tax: 2018-19 25
Tax paid: 2019-20 -310

Cash flow from investing activities 110

Divestment of share 90
Sell of short term inv 20

Cash flow from financing activities -170

Long term loan paid to sbi -500
Short term loan -150
Dividend Paid -120
Loan from ICICI 600
Net cash flow during the year 220
Opening cash and cash equivalent 365
Closing cash and cash equivalent 135
 Pulkit Sethia

tion within 45 minutes.

shares had a book value of 50.

 e year 2018-19 was completed in March 2020, and the firm had received the refund cheque.
ebruary of the financial year and final dividends in June of the next financial year. Due to covid, the firm decided not to declare any fin
BI of 500 and short-term loan of 150. A new loan from ICICI bank was also arranged during the year.

20 in the format given below (add more rows if required):

1
1

1
1

1
1

1
1

1
1
1
1
ided not to declare any final dividend for 2019-20.